The existing customers of a certain brand tend to shift their focus towards other brands over a period of time. This usually happens when a certain brand does not upgrade its products or other brands are offering the same product at a much lower price. The shift in customers’ loyalty doesn’t happen overnight. Therefore, a brand always has time to win back its existing customers. This is where the art of Customer Retention Strategy comes into play.
As far as customer acquisition is concerned, in the current scenario in the e-commerce market, the one who offers the most discounts will receive most of the customers’ attention. For example, online retail stores like Flipkart and Amazon take away the market share’s significant chunk with their lowest prices and discount deals.
However, those brands that are offering big discounts are also paying more for promotional tools like Google ads and Facebook ads.
Therefore, spending on acquiring more customers doesn’t always deliver desired profits. In such a case, it is comparatively profitable to focus more on retaining the existing customers.
Customer Retention Strategy Basics
It focuses on retaining the existing customers and strengthening the relationship between them and the brand.
According to Harvard Business School research, the profits could increase by at least 25 to 95 % if there is a growth in customer retention by 5 %. Another marketing strategy that increases sales by multiple folds is the Cross-selling strategy. In this method, a seller pitches related items with the primary product to the consumer. Cross-selling strategy can also help to retain existing customers.
The following strategies could increase the overall percentage of customer retention:
- Research: An enterprise needs detailed analysis to estimate the requirements of the customers.
- Feedback: Customers’ feedback is most important while adding new features to an existing product. It includes offers, discounts, and any other enhancement of the product.
- Assessment: A well-planned evaluation is required to know if existing customers are positively responding to the company’s reward offers. If it is working, then the company can continue them.
- Uniqueness: It is essential to plan out a unique personal retention strategy that distinguishes sellers from fellow competitors. It must simultaneously make the existing customers feel that they can still benefit from sellers’ products and services even in the future.
Significance of Google Analytics in Customer Retention Strategy
Google Analytics can be extremely useful while planning a customer retention strategy. The reporting tools of Google Analytics can benefit customer retention optimization.
The following steps in Google Analytics can help to understand different aspects of customer behavior and therefore, it can help to build a strong customer retention strategy.
- Log in to the Google Analytics account with a username and password.
- A Seller can track his sites and follow more than one website.
- In the Behavior tab, a seller can monitor the behavior of the customers with the audience link and can go through the current month, aggregate unique visitors, overall page views, bounce rate, page views per unit, and new visitors.
- The seller can check new visitors’ arrival (the unique visitors) by estimating new visitors’ aggregate. There are personal graphs to understand every type of report.
- To understand the visitor’s behavior in detail, the seller must go to the behavior link that shows the aggregate numbers of check-ins, page viewed at every visit, the percent of new visitors, and the bounce rate.
- Sellers can check the rate of returning users.
- With the Frequency and Recency link, the seller can check each visitor’s count of visits to his website.
These steps are just an overview of how sellers can navigate Google Analytics for in-depth analysis. Google Analytics can generate a report in numerous ways that can give sellers enough information on planning customer retention strategy.
These reports can guide sellers to optimize and retain their customers. It influences sellers to work on the pricing of the item, offer discounts, compare prices with other competitors and the deals they are offering to their customers and build a robust and exhaustive plan accordingly. However, if an efficient team is not hired, then the following issues remain unaddressed while working on Google Analytics. Sellers usually face difficulty when they try to set up Google Analytics and generate reports. It leads to many inconsistencies and incorrect evaluation of the customers’ requirements and behavior. Proper guidance is a must to avail of most of the opportunities and carve out the online business’s best strategies. Due to loopholes in setting up Google Analytics, analyzing the user drop-offs in the conversion funnel becomes difficult.
Conclusion
A customer retention strategy with the help of Google Analytics can help you focus on retaining the existing customers as the acquisition of new ones could take a considerable amount of time, and marketing on a larger scale requires a large-scale budget.
Therefore, a skilled CRO team can successfully set up Google Analytics on your behalf to measure various metrics and plan customer retention strategies besides addressing other issues.
They can also understand the detailed report and provide suggestions to enhance the sellers’ brand and boost the conversion rate.
To get information regarding customer retention strategy and Google Analytics, click Here to Know More.
